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Global markets advanced on Monday as investors grew hopeful that the 40-day U.S. government shutdown could soon come to an end, following reports of a bipartisan deal in Washington.
The potential resolution lifted sentiment across Asia, boosting expectations of another rate cut at the Federal Reserve’s December meeting, as the reopening of the government would restore access to key economic data—including labor-market figures closely monitored by the Fed—and ease uncertainty. Major indexes edged higher, with Japan’s Nikkei 225 rising 1.29% to 50,927.42, Hong Kong’s Hang Seng Index gaining 1.28% to 26,576.96, South Korea’s KOSPI climbing 3.44% to 4,089.9, and China’s Shanghai Composite adding 0.19% to 4,005.29.
The optimistic sentiment is also reflected in the crypto market, with bitcoin, which fell below the $100,000 mark last week for the first time since June, rebounding to around $106,000 with a 4% gain. Ethereum advanced nearly 6% to $3,604, while XRP jumped almost 8% to $2.45. BNB added 1.8% to trade at $1,006, and the stablecoin Tether held steady at $0.9999, underscoring broader market confidence following recent volatility.
Overall, the global cryptocurrency market expanded by 4.23%, with a market capitalization of around $3.57 trillion.
Precious metals also advanced, with gold rising 1.7% to $4,070.44, silver climbing 2.4% to $49.49, palladium gaining 1.17% to $1,399.70, and platinum increasing 2.47% to $1,574.87.
Investor confidence improved after reports from U.S. media indicated that senators had reached a temporary funding agreement to reopen federal agencies through January. The proposed measure followed weeks of debate over issues such as health-care subsidies, food assistance programs, and the reinstatement of federal employees dismissed under President Donald Trump’s administration.
Trump told reporters that "it looks like we’re getting very close to the shutdown ending," as the U.S. Senate prepared to vote on the short-term funding bill. If approved, the legislation would move to the House of Representatives and then to the president’s desk for signature, restoring normal government operations.
The extended shutdown has prevented the publication of official economic indicators, forcing investors to rely on private-sector data. A report last week from outplacement firm Challenger, Gray & Christmas showed U.S. layoffs in October reaching their highest level in 22 years, fueling expectations of further monetary easing.
The Federal Reserve reduced its benchmark interest rate by a total of 50 basis points since September, bringing the policy range to 3.75%–4%. According to CME Group’s FedWatch Tool, futures markets currently assign a 62.9% probability of another rate cut at the central bank’s December meeting.
Still, several Fed officials have stressed that persistent inflation remains their primary concern, suggesting caution despite signs of softening labor conditions.
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